June 10 (Bloomberg) -- Deezer, the main global rival of
music-streaming service Spotify Ltd., struck a deal with German
broadcaster ProSiebenSat.1 Media AG that gives it users and
marketing clout as it tries to catch up with its larger peer.

ProSiebenSat.1 acquired a minority stake in Deezer in
exchange for backing the service with its TV and online
advertising efforts, the companies said today. Customers of
ProSiebenSat.1’s streaming service Ampya will be transferred to
Deezer as part of the agreement, as will a deal to cater for
Vodafone Group Plc’s 32 million wireless customers in Germany.

The alliance is the largest ever for Deezer and its first
major partnership with a TV company, according to an external
spokeswoman for the Paris-based music service, who asked not to
be named citing company policy.

The deal puts Deezer, whose 16 million active monthly users
trails Spotify’s 40 million, on an even footing with its
competitor in Germany, the world’s third-biggest music market.
Spotify has had a partnership with Vodafone’s rival Deutsche
Telekom AG since 2012, allowing customers to stream unlimited
amounts of music.

“With Deezer as a strong partner we’ll get within striking
distance of Spotify” services offered by Deutsche Telekom,
Vodafone spokesman Thorsten Hoepken said. Ampya users will be
transferred to Deezer starting this summer and the operator
plans to publish subscriber numbers later this year, he said.

Carrier Clout

On-demand providers are becoming more popular as music
downloads decline. Deals with phone companies help streaming
services reach a bigger audience faster, at the expense of some
lost income through revenue sharing. Deezer has agreements with
carriers including Orange SA in France and EE in the U.K.

French company Odyssey Music Group is Deezer’s controlling
shareholder. A $130 million investment by billionaire Len
Blavatnik in 2012 helped fuel a push into markets including
Brazil, Africa and the Middle East. The company has said it’s
also preparing to enter the U.S. market.

The deal with ProSiebenSat.1 was orchestrated by Gerrit
Schumann, Deezer’s head of European operations outside of
France, who joined last year from German peer Simfy AG. Deezer’s
Chief Executive Officer Axel Dauchez is set to leave in
September to become the head of Publicis Groupe SA’s French
operations.

Pandora Media Inc., which had 77 million active listeners
last month, doesn’t offer services outside of the U.S.,
Australia, and New Zealand because of music-rights limitations.
Beats Electronics, the music-gear maker being bought by Apple
Inc., started a music-streaming service in January.